BOEM-2030 (January 2020)
Previous Editions are Obsolete.
PAGE 3 OF 4
OUTER CONTINENTAL SHELF (OCS) PIPELINE RIGHT-OF-WAY GRANT BOND (Continued)
4. If the Regional Director terminates the period of liability of this bond or additional security*, the Surety will remain
responsible for Obligations that accrued during the period of liability until the Regional Director issues a written cancellation
of the bond or additional security* in favor of the Surety.
5. If this bond or additional security* is cancelled, the Regional Director may reinstate this bond or additional security* as if no
cancellation had occurred if any payment of any obligations of the Principal(s) is rescinded or must be restored pursuant to
any insolvency, bankruptcy, reorganization, or receivership, or should the representation of the Principal that it has paid its
financial Obligations or performed the other Obligations of the pipeline ROW grant(s)in accordance with BOEM
specifications be materially false and the BOEM relied upon such representation in canceling the instrument.
6. The Surety waives any right of notice of this bond or other security*taking effect and agrees that this bond or additional
security* will take effect upon delivery to BOEM.
7. The Surety’s Obligations will remain in full force and effect, even if:
(a) Any person assigns the Instrument covered by this document.
(b) Any person modifies an Instrument or Obligation under an Instrument in any manner including modifications that result
from a modification of regulations or interpretations of regulations; or creation of any mortgage, pledge, or other grant of
security interest in the Instruments.
(c) Any person, event, or condition terminates any Instrument covered by this bond or additional security*, whether the
termination is by operation of law or otherwise.
(d) The BOEM takes or fails to take any action in enforcing, as against any party to the Instrument, the performance of any other
covenant, condition or agreement of the pipeline ROW grant, or giving notice of or making demand with respect to such
nonperformance.
(e) The Surety suffers any loss by reason of any law limiting, qualifying, or discharging the Principal’s Obligation.
8. The Surety agrees to be bound under this bond or additional security* as to the interests in any Instrument retained by the
Principal when the BOEM approves the transfer of any or all of the Instruments.
9. In the event of any default under a pipeline ROW grant, the Surety must perform the Obligations of the Principal upon
demand by the BOEM.
10. If the BOEM decides to commence suit to enforce its rights, it may commence and prosecute any claim, suit, action, or other
proceeding against the Principal and Surety, or either of them, whether or not the BOEM joins the pipeline ROW grant
holder or any other party.
11. In the event there is more than one Surety for the Principal’s performance of the Obligations, as to any Instrument, the
Surety’s Obligation and liability under this bond or additional security* is on a “solidary” or “joint and several” basis along
with other guarantors or sureties.
12. The Surety agrees to give prompt notice to the BOEM and the Principal of any action filed alleging the insolvency or
bankruptcy of the Surety or the Principal, or alleging any violation that would result in suspension or revocation of the
Surety’s charter or license to do business.
13. The Surety’s Obligation and liabilities under this Bond or additional security* are binding upon the Surety’s successors and
assigns. Nothing in this document permits assignment of the Surety’s Obligation without the written consent of the BOEM.
14. The Surety hereby waives any defenses to liability on this bond or additional security* based on an unauthorized Principal
signature.
* Must be approved by the Regional Director
